Auditors are qualified, trained and skilled professionals who are in charge of reviewing and verifying various financial records of an organization and ensuring that the organization complies with Tax Laws. Auditors point out discrepancies in accounting and identify all sorts of frauds that might occur.
There are various types of Auditors, who are in charge of different segments and sectors of an organization. Some of the most common types of Auditors available are Tax Auditors, Financial Auditors, and Internal Auditors. Students aspiring to become an Auditor can pursue Company Secretary Courses, or any Undergraduate or Postgraduate Finance Courses or Economics Courses. The sections below will discuss the various types of Auditors along with their eligibility criteria and salaries for your reference. Read More: Salary of an Auditor
Table of Content
2.3 Tax Auditors
Who are Auditors?
An auditor is a qualified specialist who examines financial documents, confirms their accuracy, and makes sure businesses are following tax regulations. They guard companies against fraud, call attention to inconsistencies in accounting procedures, and, occasionally, they operate as consultants, assisting firms in identifying ways to improve operational efficiency. Auditors serve various roles in different organizations and industries.
- Auditors evaluate financial operations and guarantee that businesses are managed effectively. They are responsible for maintaining the cash flow of a business from start to finish and making sure that the money is correctly accounted for.
- The primary responsibility of an auditor in the case of public firms is to assess whether financial statements adhere to widely accepted accounting rules (GAAP).
- Auditors examine accounting information, financial records, and operational aspects of a corporation in order to satisfy this need.
- They also take thorough notes on each step of the process, which is known as an audit trail.
Eligibility to Become an Auditor
Some of the major educational qualifications and other prerequisites that are essential to become an Auditor are listed below for your reference,
- Candidates aspiring to become an Auditor must pursue an Undergraduate or Postgraduate degree in Accounting Courses. They can also pursue MBA in Accounting.
- They can also pursue Diploma Tally Courses or other relevant Diploma Courses
- Students aspiring to become Auditors can pursue various Certifications and courses such as CA, ICWA or CS
- Companies such as the Information Systems Audit and Control Association and The Institute of Internal Auditors that fall under The International Audit Associations provide various Certifications that help one become an Auditor.
Read More: How to Become a CA
Types of Auditors
Auditors can be broadly classified into 6 major divisions based on their areas of work and specializations. Discussed below are the various types of Auditors along with their salaries for your reference.
Internal Auditor's
| Job Profile | Internal Auditors are responsible for providing an independent and objective evaluation of various financial and other business activities. Internal Auditors are in charge of advising the upper management on the best possible ways to manage an organization’s goals as well as impending risks. |
| Average Annual Salary (INR) | 6.23 L |
External Auditors
| Job Profile | External Auditors are public accountants who are in charge of reviewing, auditing and conducting other assignments for their clients. External Auditors are in a position to evaluate financial statements impartially as they are independent of all clients. |
| Average Annual Salary (INR) | 8.30 L |
Tax Auditors
| Job Profile | Tax Auditors are responsible for overseeing financial records to determine whether they are complying with the various applicable laws. Tax Auditors apply various principles of Accounting in their daily operations. |
| Average Annual Salary (INR) | 5.12 L |
Financial Auditors
| Job Profile | Financial Auditors are in charge of reviewing that an organization's financial statements must be accurate and in accordance with generally accepted accounting rules. Financial Auditors examine the transactional paperwork that the company has provided in order to evaluate the accounting and financial reports of the organization. |
| Average Annual Salary (INR) | 12.2 L |
Operational Auditors
| Job Profile | Operational Auditors are basically Internal Auditors who are specialised in conducting reviews in their area of expertise. Operational Auditors are responsible for auditing various operating activities of an organization both on a day-to-day basis as well as on a broader scale. |
| Average Annual Salary (INR) | 8.40 L |
Compliance Auditors
| Job Profile | Compliance Auditors majorly work with the higher management body of an organization. They are responsible for checking whether a company is complying with federal and other state laws and regulations. They are also responsible for enforcing guidelines within an organization. |
| Average Annual Salary (INR) | 7.18 L |
Skills Required to Become an Auditor
In order to become an Auditor, one must master various skill sets which would not only help them excel in their job but also help them make a rock-solid foundation for their career.
Some of the essential skills required for becoming an Auditor are tabulated below,
| Communication Skills | Critical Thinking | Mathematical Knowledge |
| Business Acumen | Cross-Functional Training | Executive Presence |
Types of Auditors: FAQs
Ques. What are the 3 types of auditors?
Ans. The 3 main types of auditors are Internal Auditors, External Auditors and Internal Revenue Service Auditors
Ques. What are the 5 types of auditors and their functions?
Ans. The 5 main types of auditors are,
- External Auditors.
- Internal Auditors.
- Government Auditors.
- Independent Auditors.
- Priority Auditors.
Ques. What are the levels of auditors?
Ans. The different levels of Auditors are as follows,
- Auditor I is the trainee level in the Auditor series. ...
- Auditor II is the first working level in the Auditor series. ...
- Auditor III is the full journey level in the Auditor series.
Ques. What are the 4 types of audits?
Ans. The 4 major types of audits are,
- Unqualified Opinion
- Qualified Opinion
- Adverse Opinion
- Disclaimer of Opinion
Ques. What are the 5 stages of an audit?
Ans. The 5 different stages of an audit are as follows,
- Selection
- Planning
- Conducting Fieldwork
- Reporting Results
- Following up on Corrective Action Plan
Ques. What are the 3 components of audit risk?
Ans. The 3 components of audit risk are,
- Inherent Risk
- Control Risk
- Detention Risk
Ques. What are the types of audit Programme?
Ans. The 2 different types of audit program are as follows,
- Fixed Audit Program
- Flexible Audit Program
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